Domestic electric dealers set free shipping threshold, savage competition turned to healthy development

Source: Internet
Author: User
Keywords Electrical business
Tags .mall activity activity rules bulletin business business to cost development

After the new egg China, Jingdong Mall to raise the threshold of free shipping, the last one advertised "free shipping" of the large enterprise of the Amazon China also yesterday set a free shipping threshold. The industry believes that the businessmen have used the adjustment of freight policy disguised price increases, indicating that the domestic electricity dealers are from the brutal competition to healthy development, the future of the electricity business to increase the threshold of free shipping will become the industry trend.

Amazon yesterday up 29 yuan free shipping

The Amazon China website Bulletin shows that new orders from 7 o'clock in the morning yesterday have been implemented with new distribution rules. "Purchase of more than 29 yuan (including 29 yuan) of qualified goods, you can enjoy free distribution services." If the amount of qualified goods is less than 29 yuan, you need to pay 5 yuan distribution fee. ”

It is noteworthy that, while setting a free shipping threshold, Amazon China announced the launch of its Tianjin operations center yesterday to further enhance its strategic layout in north China. Amazon China President Wang Hanwa that warehousing logistics is the key to sustainable development of e-commerce, and revealed that "this year we will have a strategic increase in the investment in warehousing logistics."

Companies stop paying for logistics

In fact, it is the third largest enterprise to set a free shipping threshold since the end of last year. At the end of November last year, Jingdong Mall began to charge an order of less than 39 yuan for 5 yuan distribution fee. Subsequently, the new Egg China also issued a notice, starting from last December 31, the implementation of a new logistics policy, the abolition of the "free Shipping" rule, Beijing, Shanghai and other use of the construction of logistics cities in less than 99 yuan orders to collect 4.5 yuan distribution fees. At that time, the new egg Chinese insiders frankly, the cost problem is one of the reasons.

In response to the domestic large-scale manufacturers of the network to cancel the logistics and distribution of "free lunch" of the status quo, China Logistics and Supply Chain Management Alliance director Huanggang that this means that the electric business model has been clear, "in the future, E-commerce industry competition core will be transformed into operational management and technological innovation."

Increase the gross profit margin by raising the consensus

For a number of peers set up a free shipping threshold, a number of companies to express support. Bowser Network (Micro Bo) Vice President Pengliang said, "Although the bowser will not make adjustments in the freight policy, but the electricity dealers charge freight is not wrong, the foreign Business-to-consumer website has no free shipping."

On this Analysys International (micro-blog) analyst Shou sent that the electricity is no longer free shipping is a disguised price increases, which can control the number of Low-cost orders, so as to improve customer unit price, so that each order spread, operating costs reduced, through this method to improve the gross margin.

In fact, as early as 1-2 years ago, domestic electric business enterprises have no free shipping policy. "Some companies want to capture the market as soon as possible, and offer free shipping to lure users and force other peers to join the queue passively." Shou sent such an explanation. He further said, "In view of the pressure of capital, low gross profit and personnel cost, if more than one household appliance merchant levy Freight, will cause the follow-up of other peers, the domestic electric dealer free shipping will become the past".

(Beijing commercial newspaper reporter Chong Xiao Meng Wei)

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.